The Cranky Realtor

In Memory of Charlotte Marie Gould

2009-02-28T07:39:00.000-08:00

Affordable Housing for Moderate Income Families

2008-02-13T07:27:00.000-08:00

And yes, I'm speaking to you.

Even in my Republican world, it hasn't escaped me that SO many of my friends, clients, soon to be friends, are in this category. Making a decent living, and STILL unable to obtain financing for a home.

They can make the monthly payment on a mortgage, but maybe can't swing closing costs, or credit scores are lower than they'd like, paying off old credit card debt, whatever. Very hard times for people like you.

This program crossed my desk - it's a pilot, and one of the first ones I've seen to meet the needs of US. Middle class. Work for the phone company. Still can't swing it.

Innovative - they are encouraging local non-profits to BUY THE HOUSE YOU WANT AND SELL IT TO YOU AT A DISCOUNT ON A RENT TO OWN BASIS. They pay your closing costs. They hold your mortgage for a few years, offer you credit counseling and help with your current debt, and then turn the ownership of the home over to you at the end of a couple of years.

Huge benefits to the non-profit. Tax breaks, cash flow, fulfilling their own local mission.

Huge benefit to you. The home you want. The terms you need. The credit counseling and possible debt consolidation that it will take to make you mortgageable.

Finally, someone is coming up with something that makes sense.

When to sell, when to buy.

2008-01-28T09:56:00.000-08:00

Interesting conversations I get myself into. And as I like to yap, I find myself shooting my mouth off about things that I know nothing about (Presidential Politics, anyone?) Lots of people out there like that.

One thing I do know a thing or two about is selling or buying a house. Usually they go together - most folks need a place to live. What I am not so good at is predicting the BEST time to buy or sell a house. Lots of people out there like that, too.

So, as in most things - common sense prevails. I found some decent articles you may like - It's a Buyers Market , Six Signs it's Time to Buy and Ten Steps to Sell More Quickly.

Hope you like them....

Can you make money in Real Estate in 2008?

2008-01-02T09:36:00.000-08:00

So we were at a wonderful New Year's Eve bash the other night, and as I listened to the conversation swirling around me (I had had too much Shiraz, and my mouth wasn't working for once), I realized that most of us are obtaining our Real Estate information from each other. My neighbors are smart people (not to mention very good looking), but the problem is that most of us have only a piece of the picture, and pieces of the picture aren't enough to help make good decisions.

There IS some good news coming out of the economic disaster that is currently looming thanks to the Real Estate market.

First, some sad assumptions:

The Real Estate market (meaning home prices and sales levels) will not "recover" in 2008. With doom and gloom being washed over us daily, coupled with the foreclosure wave that is still approaching the Northeast, we are in for a few years of difficult times in Real Estate.

Your home is NOT worth what is was 1 year, 2 years, 3 years ago.

However, think about this:

Your home, and Real Estate in general is, for most people, your most lucrative investment. (See this article)

Consider retaining, or purchasing rental property. The need for rental property is skyrocketing (see RealtyTimes), and the prices to purchase are low.

This is a business cycle, and like all business cycles, will make many, many people much, much money, as those with a little bit of money now will be able to invest low, and ride it out.

More later....

Rental

2008-01-02T09:14:00.000-08:00

$1500 a month for your own waterview home in the Boston Area

2007-11-26T11:15:00.000-08:00

Yes, this one is true, and a happier story to tell than the foreclosure scams in previous posts. We're VERY connected to this one - my favorite client has purchased this cute Cape in the neighborhood, and is bringing it back to its former glory.

The "neighborhood," by the way, is a tight knit, lakeside community in Framingham, MA

Check the mortgage calculator for details on the monthly payment - interesting numbers when average rent in the Boston area is $1875.

I've only posted the interior because the previous owner started turning it from red to gray, and only got halfway there.... keep your eyes out on this blog, and I'll update the pics when the exterior is done.

Auctioning the American Dream

2007-11-14T07:52:00.000-08:00

We were keeping our eyes on this massive Real Estate Auction held at the Hynes last weekend. One of us attended, and were amused (?) by the proceedings. This Boston Globe article captures it nicely...

To review (see posts below), this is not an auction that a bank would conduct at the property soon after foreclosure. These showy auctions, part business, part entertainment, are designed to move homes that have NOT sold through standard auction, or regular listings through agents like me.

Should you buy a home at an Auction like this?

YES - if you look through the inventory being auctioned, and find a home you WANT. Inpect the home prior to the auction, and accept that there will be a considerable amount of work to be done. The newlywed noted in the article is a good example of this - she bid upon a home that she was familiar with on the street that she grew up on.

NO - if you are simply looking for a bargain. It's telling that the contractors attending the auction left quickly. These professional auctioneers were getting what we consider to be current market value for most of the homes auctioned.

Take a look at the auctioneer's site, as well - very interesting, and I give them much credit for doing a GREAT job at moving these homes.

Just $300 a month for a 4 bedroom, 2 bath home!!! Call Now!!

2007-11-09T10:19:00.000-08:00

I am getting questions from some readers about the ads on TV and Radio hawking foreclosure property. (See my post below re: foreclosures to get some general background).

So I poked around a bit, and found that the rule is still true - if it seems too good to be true, it is.

Let's review:

There are a few ways that foreclosed property is sold:

Individual Auction (at the property) - usually listed in the local paper under Legal Notices
Auction Event (for a good example see USHome Auctions)
Through normal home sales channels like the MLS System/Realtor.com and a Real Estate Agent.

Banks and lenders give foreclosure listings to the people that sell homes for a living (Realtors and legitimate Auctioneers) in order to recoup the most money from their asset.

You NEVER need to pay for foreclosure listing information. There are 188,000 websites devoted to selling lists. And once they get your credit card info, you can be charged monthly, and it is difficult to cancel.

There is also a misconception regarding pricing. Make no mistake, banks and lenders are not "dumping" property through any of these sources. It is in their best interest to get the most money possible for the asset. It will be no cheaper to find it through a list seller online, than to speak to a Realtor, or attend a legitimate auction. Again, see my post below for pros and cons of auctions.

If you are interested in foreclosure business, speak to me, or your Real Estate Agent. We have access to all of these foreclosures, with clear titles, no tenants that refuse to leave, and information on condition of the property.

If it seems too good to be true, it is.

Why can't I get anything done???

2007-11-05T07:31:00.000-08:00

Or at least that is what I USED to say, back in the bad old days. (Ok, as of 2 weeks ago).

In my former life, I was a huge consumer of motivational books, tapes, etc. My favorite is still Zig Ziglar - "How high does a tree grow? As high as it can!!" Seems cheesy now, but it hit the mark on my daily commutes into Boston. And I was younger, and not as cynical. Another of my favorites was Dr. Wayne Dyer, back when he had hair, but he's gotten New Age-ish silly, with shows on PBS ending with his daughter wailing songs like "The Rose" in the background.

But with less time to devote to more work, I just wasn't moving through the projects/accomplishments the way I need to, and that frustration does a number on your outlook.

Reading Wired magazine (that's another story - love it) and read a review of David Allen's Getting Things Done, then bought the book. It's just perfect for me right now.

There is much to his system, but I'm mainly using his tips on making lists a habit. The theory is, once it's on paper, or an easily accessed file in an organized fashion, it's off your mind until the appropriate time, and your brain is free to THINK, not worry over the details of your life. ("did I remember to call the insurance company/the client for Milford," etc)

He doesn't get too deep into the "follow your dreams" train of thought that I would have no patience for right now. ("Follow my dreams? How's about I follow myself out the door in time to pick up my kids so they're not giving me the evil eye at Pre-School?")

And it's working. I FEEL calmer, more organized. There's no less to do, but I feel focused in doing it.

Check with me in a week, let's see if it lasts.....

First time homebuyer assistance

2007-10-03T09:59:00.001-07:00

Considering that the price of many of my listings makes them interesting to first time homebuyers, I have been doing some research on programs that assist either the first time homebuyer, someone with less than perfect credit, or people with adequate income, but not enough for a down payment.

In the meantime, I recieved a call from Bill McDevitt from National Mortgage Exchange letting me know that they have hired someone that handles clients in just these situations.

Good, because my thoughts on programs such as the ones detailed here are that they are wonderful, but daunting to the average person.

My suggestion, if you are ready to buy, but need to look at all funding sources, is to read up (see links below) and then call Bill at 781 888 0595 anytime to understand how to obtain money from programs like these.

9 Tips for First Time Homebuyers

Department of Housing and Community Development

First Time Homebuyer Grants

US Dept of Housing and Urban Development

What if MY mortgage lender goes broke?

2007-09-23T17:56:00.000-07:00

Interesting article on MSNBC about another question worrying some of my clients - can my mortgage holder go belly up and cause trouble with my mortgage payment?

The short answer is that the terms of your loan are legally fixed, and cannot change, no matter who takes over your lender/their assets. The deeper answer is that if this does happen to you, make sure you keep a close eye on your account to make sure payments are applied properly, your taxes are paid, etc. It's a paperwork nightmare for them, and could trickle down to you.

I have one client, Joanne, who's mortgage was sold to another company BEFORE she even made her first payment on her new home in February. And it's been sold again, since then due the mortgage holder's financial troubles. Joanne's sharp, and will stay on top of this, but it CAN be a part time job!

Buying foreclosure property

2007-09-21T08:47:00.001-07:00

Many, many questions from all of you lately - so here are some basics:

3 types of Foreclosure Sales:

1) SHORT SALES

The homeowner has negotiated with the Lender to put his own house up for sale for less than is owed on the mortgage. The homeowner benefits by limiting the damage to his credit, the Lender benefits by not having to foreclose and sell the home themselves. This BusinessWeek blog explains further

Look for these if you:

Are looking for a traditional sale - a nice home to move into

Have patience - Lenders are VERY slow to respond on offers

2) AUCTION

The Lender has foreclosed on the property, and will try to unload it quickly through an auction process. Yes, it is just like you see in the movies - the auctioneer stands outside the home at the appointed time and takes bids.

Go to these if you:

Have ready cash - often $5 - 10K in cash is required on the day of the auction if your bid wins.

Are a gambler - many times access to the inside of the house is limited, and they are sold "As-Is."

Have time and patience - You may be faced with evicting a current tenant, paying off liens, etc.

Your attorney will love you for buying one of these.

3) LISTED FORECLOSURE

The Lender has foreclosed, perhaps tried an auction, and now has listed it with a broker to be sold in a traditional manner.

Look for these if you:

Are able to put at least 5% down and close in 30 days.

Are willing to do/pay for some repair work if necessary. (These are also sold "As-Is.")

The property listed here is this type.

Oak Realty handles all three of these types of transactions. For the record, I let the experienced guy handle the auctioneer job. He's got the voice for it, too.